Burundi economy growth forecast at 3.3% for 2022, according to the IMF
By George Mwangi
Special for Dow Jones Newswires
Burundi’s economy is expected to grow by 3.3% in 2022, up from 3.1% last year, the International Monetary Fund said on Friday.
“The war in Ukraine disrupted the momentum of the recovery, with the associated rise in import prices (food and fuel) and decline in export prices (tea and coffee) and supply chain bottlenecks. supply amplifying inflationary pressures and external sustainability challenges,” the IMF said in a statement. .
Growth is expected to reach 4.1 percent in 2023 and average about 4.7 percent from 2023 to 2027, he said.
“Downside risks are significant, stemming from uncertainty around the duration and impact of the pandemic and the fallout from the war in Ukraine,” the IMF said.
“These risks are however partly offset by significant upside risks related to the recent announcement of grants to help Burundi cope with external shocks, the full potential of re-engagement with the international community and the end of negotiations on mining contracts,” he said.
Inflation is expected to rise to 11% this year from 8.3% the previous year and fall to 8% in 2023, the IMF said.
The budget deficit was expected at around 5% of gross domestic product in July 2021-June 2022, down from 7.8% during the peak of the Covid-19 pandemic the previous year, he said.
The IMF said it had fully re-engaged with the Burundian government since its last consultation in 2014.
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